Mako Shares Tank On Sales Expectations Of Surgical Robot
Shares of Mako Surgical Corp. (NASDAQ:MAKO) plummeted on Tuesday after the company announced it expected to sell fewer surgical robots than it initially expected this year, heightening fears that the company may have trouble finding a buyer for the machine, Reuters reports.
Adding insult to injury, several company officials have sold off millions of dollars in company stock in recent weeks.
According to the news source, the sales cut was the second in two months, which combined with the first have sent the company's stock down 65 percent since the first warning in May. The RIO System robot was developed to perform minimally invasive knee surgeries.
"RIO System sales in particular disappointed, while procedures were just below our estimate," said Michael Matson, an analyst with Mizuho Securities USA.
The medical device company said it now expects to sell 42 to 48 RIO robots this year, compared with an earlier estimate of 52 to 48.
In the last three months, company insiders have sold a total of $31.71 million in shares, valued between $24.76 and $26.06 each. Although insider buys have been reported, the number is comparatively tiny, at $238,170.
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